Transcription Below

 

 

Audible Free Trial (get this book for free!)

The Weekend Millionaire’s Real Estate Investing Program (Audible Version)

The Weekend Millionaire’s Real Estate Investing Program (With CDs and Workbook)

(disclosure: ^^^ these links give me a commission — at no extra cost to you! They just give me a little bump if you decide to use them. Thank you!)

Transcription

 

I like the authors/narrators, they tell good stories and give good examples.

 

Quick Intro

 

This book is only available in audio format. The audible version is seven hours and 11 minutes and the CD version is relatively the same length and it comes with a workbook and paper examples.

It is advertised on Amazon as follows,

“…The Weekend Millionaire’s Real Estate Investing Program is filled with practical ideas that work. In one of the most complete products on real estate investing you will find anywhere, successful real estate investors Mike Summey and Roger Dawson take the potentially complex topic of real estate investing and turn it into a simple, easy-to-understand process that shows you how to build wealth. Mike and Roger both have proven track records when it comes to real estate wealth building and show you how you can create a game plan for success over the process of eight weekends…”

So, what are three things we can use from this book?

 

3 Things You Can Use

 

1. Price and Terms

This book puts a strong emphasis on the notion that when buying a property, especially with the intent to rent it out, the total price you get it for isn’t everything. They note that the terms of a deal can be just as important and should be included into the decision, every time.

For example, you go to purchase a single family home with the intent to rent it out.

Option 1, you go to purchase the house at $100,000 with 15 year financing at an interest rate of 6%. After a $10,000 down payment, you are paying $760 a month for the house and the interest.

Option 2, you go to purchase the house through seller financing for a 15 year term for $135,000, no money down with no interest. With this option your monthly payment would be $750. So on paper you pay $35,000 more, but you save $10 a month on your payment. Where renting is concerned, monthly payments are everything, so this combination of price and terms may be more interesting to the seller, while still being more profitable for you.

Also under the terms portion are the different possible concessions.

Some concessions you could include may be:

  • The seller will pay the closing costs.
  • The seller will cover the title insurance
  • The seller with throw in that cool grill and patio set

Don’t be fooled by the idea that price is the only factor in your deals, the terms can carry just as much weight.

 

2. Gambits

In chess, there are different tactics and strategies that are designed to put you in a certain position in the game. There are beginning gambits, to help you get the game going in your favor, there are middle gambits, to keep the momentum going on your side and there are end gambits, to help seal your victory.

Roger Dawson’s plays the part of the negotiator throughout this book and teaches you different negotiation tactics throughout, in the form of negotiation gambits. I’ve got my favorite gambit from the beginning, middle and end gambits.

-Favorite beginning gambit: ask for more than you expect to get

Aim high high high. You can have the expectation to go lower, but you mainly do this to give yourself room to negotiate and make them feel like they win if they get you to budge on your high position

-Middle Gambit: higher authority gambit

Once you’ve gotten to a settling point, let them know that you have to check with your board of directors or your partners and make sure to get the OK. This gives you the ability to be the good guy and seem like you are on their side but you need the approval of your higher authority.

-End Gambit: position for easy acceptance

So you’ve been blowing through them throughout the negotiations, and the deal may be obviously in your favor far above their favor. They may feel some resentment if they think on it too long. You sense that and make a small concession to give them their win back. Doesn’t matter the size of the concession, as long as they feel good about the deal again and will be willing to close on it.

 

3. NOI

Don’t rely on scarcity or inflation to drive the price up for you to sell and make a return. Structure the deal to be providing cash-flow immediately for a return on investment that isn’t a crap shoot by using this:

-NOI- net operating income. Use this figure to determine what rent you will charge. This is calculated using all of the figures I mentioned in my Intro to Real Estate Investing post in the cash-flow section and includes things like:

  • Mortgage
  • Property taxes
  • Homeowner’s/Landlord’s insurance
  • Management fees
  • Maintenance
  • etc…

And then profit/contingency funds, all figured out monthly.

After seeing the average rents that are charged in the area of the home you are looking for, make sure that you know what your monthly financing/mortgage payment needs to be in order to stay in the rent range. Keep this figure in mind during your negotiations and never make a deal that isn’t going to make you money right away.

Make sure it’s a good deal the day that you buy.

 

A Few Words:

This book has a large focus on buying and renting single family homes. It is meant to be a book for beginners and they suggest this method as the best for beginners for financial and stress-related reasons.

No guidebook included but I don’t think you need it.

I also had to mention that I loved the little in-between-chapter guitar music on 1.5x speed and found myself dancing to it sometimes while at work.

Thank you for watching, see you next week!

 

Want to Read it?

Audible Free Trial (get this book for free!)

The Weekend Millionaire’s Real Estate Investing Program (Audible Version)

The Weekend Millionaire’s Real Estate Investing Program (With CDs and Workbook)

(disclosure: ^^^ these links give me a commission — at no extra cost to you! They just give me a little bump if you decide to use them. Thank you!)

 


 

Attribution:

  • Punching Sounds (in video) by: Mike Koenig

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